How Solana is changing cross-border agribusiness.
Solana-based real-world assets (RWA) marketplace AgriDex has helped close a cross-border agricultural trade between a South African producer and a London importer.
The importer has sourced more than two hundred bottles of virgin olive oil and several bottles of wine from farms and vineyards in South Africa.
According to the announcement, AgriDix facilitated trade payment on the Solana blockchain and charged 0.15% for each side of the trade. In contrast, traditional payment methods result in higher fees from both parties.
Solana surpasses traditional systems for cross-border trade.
Adrian Vanderspuy, owner and CEO of Oldenburg Vineyards, noted this reduction in transaction and transaction costs as well as faster settlement times.
“The funds went into our AgriDix account in seconds instead of days, and the payouts were £5 ($6.45). We look forward to continuing our partnership and bringing more of our shares onchain.”
In an interview with Cointelegraph, AgriDix co-founder and CEO Henry Duckworth explained how the Solana-based marketplace can eliminate multiple currencies, different legal frameworks and excessive paperwork by simulating agricultural contracts.
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As more adoption takes place in onchain neighborhoods, the resulting savings can be passed on to manufacturers. Duckworth explained:
“Wages for many of the world's farmers are low, and the environmental impact of trade is poorly understood. The main goal of the Agridex system is to ensure better and more profitable payments to farmers and provide financial support based on their defined business flow.
Pass savings
Agridex's current focus is on empowering low-wage smallholder farmers, particularly in cocoa, wheat and sugar production. We aim to encourage community planting by ensuring better, faster and more direct payments to farmers. “We hope to develop improved productivity and planting practices by supporting buyers from these farmers,” he said.
The South African wine will arrive in London on July 29, and the olive oil will arrive a few days later, completing the first agricultural trade on Solana.
AgriDix is also facilitating the sale of agricultural land in Zambia to the Mauritian Institute for Sustainable Development and the sale of bakery machinery from South Africa to Zimbabwe. Each of these transactions is valued at over $500,000.
Duckworth advises exporters to be transparent about their operations and encourage various data points that instill confidence in buyers.
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